U.S. consumers are reducing spending in response to inflation and tariffs but are not entirely pessimistic in their outlook.
The “2025 State of the Shopper Survey” from Acosta Group shows overall consumer sentiment declined this year by 30% through April 2025. Six-in-10 respondents say they are more worried about rising prices than they were six months ago, especially when it comes to food and grocery costs.
[READ MORE: 85% of global consumers worried about grocery prices]
Most respondents say they have not seen any price reductions in the past six months. Nearly 30% report shopping more frequently at discount grocery or dollar stores, and more than 25% say they are visiting specialty grocers less often due to personal financial constraints.
Traditional grocers remain the top channel of choice for food shopping among respondents at 78%, followed by mass retailers at 64%, and discount retailers at 39%.
Although growth in private label unit share has slowed since mid-2023, nearly half of respondents (48%) now say they choose store brands because they want to – not because they have to. In contrast, only 16% of respondents cite financial necessity as the main reason for choosing store brands.
Tariff concerns
Respondent concerns are highest for tariffs on food and beverages (60%), apparel (42%), and major goods like cars (52%), and electronics (51%). Gen Z is the most optimistic generation when it comes to tariffs, with 45% expecting positive outcomes from them over the next three-to-five years.
However, 62% of all respondents worry that tariffs may lead to a recession in 2025, with that concern rising to 70% for millennials.
— news from Chain Store Age
— News Original —
Here’s how consumers are responding to economic uncertainty
U.S. consumers are cutting spending in response to inflation and tariffs but are not totally pessimistic in their outlook.
The “2025 State of the Shopper Survey” from Acosta Group shows overall consumer sentiment declined this year by 30% through April 2025. Six-in-10 respondents say they are more worried about rising prices than they were six months ago, especially when it comes to food and grocery costs.
[READ MORE: 85% of global consumers worried about grocery prices]
Most respondents say they have not seen any price reductions in the past six months. Nearly 30% report shopping more frequently at discount grocery or dollar stores, and more than 25% say they are visiting specialty grocers less often due to personal financial constraints.
Traditional grocers remain the top channel of choice for food shopping among respondents at 78%, followed by mass retailers at 64%, and discount retailers at 39%.
Although growth in private label unit share has slowed since mid-2023, nearly half of respondents (48%) now say they choose store brands because they want to – not because they have to. In contrast, only 16% of respondents cite financial necessity as the main reason for choosing store brands.
Tariff concerns
Respondent concerns are highest for tariffs on food and beverages (60%), apparel (42%), and major goods like cars (52%), and electronics (51%). Gen Z is the most optimistic generation when it comes to tariffs, with 45% expecting positive outcomes from them over the next three-to-five years.
However, 62% of all respondents worry that tariffs may lead to a recession in 2025, with that concern rising to 70% for millennials.